Sprott Capital Partners and PI Financial will be co-lead underwriters, along with BMO Capital Markets. Each unit will include half a warrant exercisable at 85c for two years. The underwriters have an over-allotment option which could bump the raise to $17.25 million.

The market responded negatively to the announcement with shares in GoGold Resources falling 15% to 71c after opening, valuing the company at $132 million.

GoGold reported record production for the quarter ending December 31, 2019, of 379,082 ounces silver and 2,407oz gold driven by production at its Parral operation in Chihuahua, which has increased for five consecutive quarters.

A newly installed SART plant is expected to bring technical and economic benefits to Parral and help with the recovery of a high-grade copper sulphide product, the re-generation of cyanide—the largest single operating cost at Parral—and improved leaching efficiency of the heap.

Recent exploration results from nine diamond drill holes at Los Ricos included successfully testing for strike ad depth extensions, with highlights including 18.9m grading 2.01 grams per tonne gold and 496.4g/t silver.

"The majority of our past drilling has focussed on the historical mine at Los Ricos. The high-grade hole 88 opens up what we believe is a new ore shoot to the northwest which we will continue to focus additional drilling. This drilling can potentially yield additional high-grade intercepts which could be a bulk minable target," said president and Brad Langille in a statement.